British home values rise £39 billion in 2009 after huge drop in 2008
15th December 2009
- Average British home value up £1,517 in 2009, after dropping £31,355 in 2008
- Average property value up £4 per day in 2009, after losing £86 per day in 2008
- England & Scotland property values rise but Wales continues decline in 2009
- Biggest rebound in Gloucestershire, up 3.8% this year after 14.1% drop in 2008
As 2009 draws to a close, British homeowners can breathe a sigh of relief compared to this time last year as home values across the nation have risen by £39.1 billion in 2009. Whilst the increase is modest, it is a massive improvement over 2008 when British property values fell £811.3 billion, according to property website Zoopla.co.uk, which provides free online valuations for every home in the country.
However, with the total value of the British residential housing stock now standing at £5.3 trillion, up marginally on one year ago, it still remains over three quarters of a trillion pounds below its peak of £6.1 trillion in late 2007. The average home in Britain is now worth £205,591 according to Zoopla.co.uk, up £1,517 (0.7%) from one year ago, a daily gain of £4 for the average property. This is in stark contrast to 2008 when property values fell by £31,355 (13.3%) on average, equivalent to a daily loss of £86 per home.
Property prices in England have climbed 0.9% over the past 12 months, having fallen 13.9% in 2008. Scottish values have also risen in 2009 by 0.6% to an average of £156,905 up from £155,597 at the end of last year. However, the property market in Wales is yet to rebound and has seen average values drop a further 2.5% (£3,866) in 2009 on top of the 13.2% decline in 2008.
Homeowners in Gloucestershire have had the biggest cause for celebration in 2009 as average property values have risen 3.8% over the past year to a current average home value of £229,945. At the other end of the scale, there is far less to cheer about in Merthyr Tydfil where the property values suffered the largest loss in 2009, falling 6.2% to a current average value of £94,132.
Nicholas Leeming, Commercial Director of Zoopla.co.uk, said: "2008 was undoubtedly the annus horribilis for homeowners. But, property prices have stabilised this year, rising gradually since April after a fairly weak first quarter. We are still a long way from the values seen before the recession took hold, but the housing market has not worsened in 2009 as some had feared and recovery signs are starting to take hold. With the biggest share of the UK's household wealth - 39% - in property, it is far better news for homeowners this Christmas than last with their principal asset in better shape than at the start of the year."
Property value changes in 2009
|Country||Value change %||Value change £||Avg. value (Dec 09)|
Property value changes by type in 2009
|Property type||Value change %||Value change £||Avg. value (Dec 09)|
Best performing towns in 2009
|Town||Value change % in 2009||Value change £ in 2009||Avg. value (Dec 09)|
|Downham Market, Norfolk||8.1%||£12,380||£164,535|
Worst performing towns in 2009
|Town||Value change % in 2009||Value change £ in 2009||Avg. home value (Dec 09)|
|Liversedge, West Yorkshire||-12.9%||-£20,206||£136,172|
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Notes to editors
Zoopla.co.uk is a unique property website offering users information and tools to help them make better-informed property decisions. Our aim is to provide the most comprehensive source of residential property market information in the UK to help buyers, sellers, owners and estate agents alike and give them an advantage in the property market.
In 2007, following the success of bringing DVD rental to the web with LOVEFiLM.com, Zoopla founders Alex Chesterman and Simon Kain realised that the UK property market had yet to fully enjoy the benefits of the internet in terms of its ability to deliver transparency and efficiency. They set out with the mission to transform the property market for both professionals and consumers by:
- offering users FREE access to instant value estimates, sold house prices and local information and trends
- enhancing estate agents' marketing efficiency by providing exposure/leads on a pay-for-performance basis
- helping users find local agents and other property professionals to assist them in the transaction process
- letting buyers make offers on ANY UK home and owners test interest in their homes before choosing to sell
- creating an environment where anyone can ask/answer questions and share their knowledge about homes
By providing FREE value estimates for EVERY UK home, sold prices and local information as well as hundreds of thousands of property listings for sale/to rent, Zoopla.co.uk is fast-becoming the ultimate destination for users to both search for property and to do their market research. We continue to be the UK's fastest growing property website and largest and most active property community, with over a million user contributions to our website in the past 12 months alone. We also offer unique features, like TemptMe. and AskMe., which allow consumers to gain an insight into the market and discover information they won't find anywhere else. Our estate agent directory, FindAnAgent and our unique AskAnAgent feature also help guide users to local professionals directly for their expertise.
Our value estimates are calculated using a proprietary algorithm (secret formula) that we have developed by analysing millions of data points relating to property sales and home characteristics throughout the UK. The algorithm works by comparing relationships between home prices, economic trends and property characteristics in given geographic areas. Our estimates are constantly refined, using the most recent data available and a variety of statistical methodologies, in order to provide the most current information on any home.
Zoopla Limited is a privately held company with a highly experienced and proven management team, backed by well-respected angel investors and leading venture capital firms Atlas Venture (atlasventure.com) and Octopus Ventures (octopusventures.com).